The Insurance Authority (IA) has approved the merger of Gulf General Cooperative Insurance Company (GGI) and Gulf Union Ahlia Cooperative Insurance Company (GUAI), announced the two insurers on the Saudi stock exchange Tadawul last week.
The statements noted that the merger completion is still subject to satisfying a number of conditions, including mainly obtaining the approval of the Capital Market Authority (CMA) and the shareholders of both companies.
Last December, following the release of a non-objection statement from the General Authority for Competition, the two insurers signed a binding merger agreement. The agreement states that GGI will be merged into GUAI, a move which will result in all rights, liabilities, assets and contracts of the first being subsumed into the latter in exchange for GUAI’s issuance of 22,823,227 newly issued shares with a nominal value of SAR10 ($2.67).